In 2023, several penny stocks defied expectations, offering impressive returns to investors. Among these notable performers were Vodafone Idea, Suzlon, and Reliance Power. These stocks managed to deliver returns of up to 250% during the year.
Investing in penny stocks is inherently risky, but with careful consideration and strategy, investors can reap substantial rewards in a short amount of time. However, it’s crucial to recognize that penny stocks are often characterized by low liquidity and can be highly volatile. Despite these challenges, many high-risk appetite investors are drawn to penny stocks, anticipating substantial gains.
Here’s a closer look at some of the standout penny stocks that delivered impressive multibagger returns in 2023:
- Vodafone Idea: The share price of Vodafone Idea surged from approximately ₹8 to ₹16, translating to a 100% return for investors in 2023. This penny stock hit a low of ₹5.80 per share on NSE in March 2023 but saw a sharp uptrend in the fiscal year 2023-24, reaching ₹16 per share, marking a 175% increase.
- Reliance Power: Despite facing selling pressure at the start of 2023, shares of Reliance Power bottomed out at ₹9.15 per share by the end of March 2023. In FY24, these shares witnessed a significant upswing, ending the year at ₹23.30 per share. This stock, backed by Anil Ambani, delivered an impressive 150% return in FY 2023-24, although it experienced a 60% net return decrease in the year-to-date period due to early selling pressure.
- Mauria Udyog: Mauria Udyog’s shares closed at ₹10.23 per share on BSE at the end of 2023, marking a substantial increase from ₹3.67 per share earlier in the year. This penny stock recorded a remarkable 180% return in 2023. Despite being considered a sell-on-rise stock since September 2023, it has consistently remained above ₹8.89 per share since November 2023, indicating a potential exit from base building mode in the last two months.
These are just a few examples of the impressive penny stocks that outperformed expectations in 2023. Other noteworthy penny stocks that delivered significant returns in the year include Comfort Intech, Vivanta Industries, BSEL Algo, Kenvi Jewels, Tarini International, Suzlon Energy, and Tatia Global Vennture. Investors should exercise caution and conduct thorough research before considering investments in penny stocks.